Daily thread to exchange ideas and to share your thoughts
Happy Friday, everyone! Hope you're all doing well as we get things going in the session ahead. It is PMI day in Europe this morning and the market landscape is setting up a decent backstory ahead of the key releases in the coming hours.
Risk is off as we see haven flows dominate to start the day, a mood that is likely to keep up ahead of the weekend unless Wall Street can turn things around once again (I wouldn't put it beyond them at this point).
But the nail in the coffin could be the PMI readings today, as more negative reverberations about global growth could sap out market confidence for now at least.
There are still a lot of good plays in the market with the free-falling aussie and kiwi among them, alongside the technical breakout in gold.
As for USD/JPY, I'd look towards 112.40 as being the next key test of the recent divergence. Otherwise, this is perhaps where the run may come to an end as the softer risk mood may start to see normality resume.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
